Investment Philosophy

At Spyglass, we are Value Investors in Growth Companies. We do not conform to a traditional investment style. We invest with a well-defined valuation framework in businesses operating in secular growth industries.

Strategy Overview

As of March 31, 2024

Strategy Inception

October 1, 2015

Primary Benchmark(1)

Russell Midcap Growth Index

Active Management

93% active share

ESG Integration(2)

PRI, ISG Signatories

Concentrated Portfolio

25 holdings

Earnings Growth 2 Yr Est. CAGR(3)

31%

(1) Please see “additional information” for important disclosures.

(2) Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors.

(3) Spyglass research models use hypothetical scenarios and forecasts which have inherent limitations, including but not limited to, their inability to reflect the impact of unknown economic and market factors. They rely on opinions, assumptions and mathematical models, which can turn out to be incomplete or inaccurate. These opinions and assumptions are often based on past events and do not consider unforeseen events or developments. Should any opinions or assumptions prove to be inaccurate, the model’s results may vary significantly.

Portfolio Characteristics

As of March 31, 2024

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Portfolio Characteristics Spyglass Growth Strategy Russell Midcap Growth Index
5 iim@inertiaim.com 13/04/2024 10:41 PM iim@inertiaim.com 13/04/2024 10:41 PM Weighted Avg Market Cap ($bn) 22.8 32.3
6 iim@inertiaim.com 13/04/2024 10:41 PM iim@inertiaim.com 13/04/2024 10:41 PM Median Market Cap ($bn) 12.5 13.106
7 iim@inertiaim.com 13/04/2024 10:41 PM iim@inertiaim.com 13/04/2024 10:41 PM Number of Holdings 25 330
8 iim@inertiaim.com 13/04/2024 10:41 PM iim@inertiaim.com 13/04/2024 10:41 PM Earnings Growth 2 Yr Est CAGR 31% 9%

Performance

Net results as of March 31, 2024

Period Spyglass Growth Strategy Russell Midcap Growth Index
Q1 2024 12.21 9.49
1 Yr 53.53 26.28
3 Yr -5.44 4.62
5 Yr 8.23 11.82
Since Inception 12.38 12.82

Spyglass Growth Strategy net performance is a composite calculated in a GIPS compliant manner. 3 Yr, 5 Yr, and Since Inception performance is annualized. Past performance does not guarantee future results. Performance of the Russell Midcap Growth Index is included for informational purposes only and includes the reinvestment of dividends. Data source: Bloomberg. Spyglass Growth Strategy inception date was October 1, 2015.

Data source for Russell Midcap Growth Index returns: Bloomberg.

GIPS Compliance and Verification Status. Spyglass Capital Management, LLC (Spyglass) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Spyglass has been independently verified solely for the periods October 1, 2015 to December 31, 2023. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. Policies for valuing portfolios, calculating performance, GIPS Reports and a listing of composite descriptions are available upon request.

Firm Information. Spyglass is an investment advisor registered with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended.

Composite Description. The Mid-Cap Growth Composite contains all fee-paying, discretionary accounts that are managed according to Spyglass’s singular core strategy. The Mid-Cap Growth Strategy invests primarily in U.S exchange traded equity securities in the mid-capitalization classification ($2 billion – $12 billion) and seeks long-term capital appreciation while incurring a low risk of permanent capital loss. The strategy uses a concentrated and low turnover investment approach, and seeks to identify and invest in high-quality growth-oriented companies trading at discounts to Spyglass’s assessment of their intrinsic value. Spyglass has determined the most appropriate benchmark for the composite is the Russell Midcap Growth Index. The Mid-Cap Growth Composite was created in 2018; its inception date is October 1, 2015. From October 1, 2015 to December 29, 2017, the composite is composed solely of an equity partnership fund. Spyglass’ managing member and CIO served as portfolio manager for this fund. From December 29, 2017 to April 30, 2018, the composite is composed solely of the successor equity mutual fund subsequent to the tax-free exchange of the partnership fund to the equity mutual fund. Subsequent to April 30, 2018, the composite also comprehends all discretionary separately managed accounts resident for the entire period of presentation. The strategy and portfolio manager for the term of the composite were the same. For periods after May 1, 2018, the composite is composed of the mutual fund, its predecessor partnership and separate accounts. Currently, the assets in the mutual fund comprise a significant majority of the composite’s assets.

Fee Schedule. Spyglass’ proforma annual asset-based management fee schedule is 1%. Gross performance results do not reflect the deduction of Spyglass’ investment advisory fee which lowers a client’s total return. Gross of fees returns are calculated gross of management, fund administration, and custodial fees and net of transaction costs. Net of fees returns are calculated by deducting the monthly-equivalent amount of Spyglass’ highest applicable annual management fee of 1.00% (“Model Net Fee”), as described in the firm’s Form ADV, Part 2A from the monthly composite gross return.

Reference Index Disclosure. The Russell Midcap Growth Index measures the performance of the mid-capitalization growth sector of the U.S. equity market. It is a subset of the Russell Midcap Index. The index is market-value weighted. Index figures reflect the reinvestment of dividends. Index figures do not reflect deductions for any fees, expenses, or taxes. Investors cannot invest directly in an index. Spyglass has licensed the right to present the Russell data.

Other. All returns presented in the table (including the Reference Index) include the reinvestment of dividends. Valuations are computed and performance is reported in U.S. dollars.

Disclosures Regarding Performance Calculations. The net performance results reflect the reinvestment of dividends and other earnings and the deduction of actual costs and expenses, a periodic management fee charged to the investor as defined in the offering materials. The Strategy’s performance results are based on the calculations prepared, in part, by independent fund administration organizations or published custody statements for separately managed accounts adjusted for management fees. Certain performance results themselves were prepared by Spyglass and have not been reviewed by any third party. Future investments will be made under different economic conditions and in different securities. The performance discussed herein reflects investment of limited funds for a limited period of time and does not reflect Spyglass’s performance in all different economic cycles. It should not be assumed that the Strategy will experience similar returns in the future, if any, comparable to those published in this or other materials prepared by Spyglass. The information given herein is historic and should not be taken as any indication of future performance. All returns presented in the table (including the reference index) include the reinvestment of dividends. Valuations are computed and performance is reported in U.S. dollars. Spyglass believes that the comparison of the Strategy’s performance to the Russell Midcap Growth Index is currently the most appropriate benchmark. This may change over time. The Spyglass portfolios are more concentrated and are therefore not as diversified as the Russell Midcap Growth Index. The Russell Midcap Growth Index returns reflect the reinvestment of dividends as does the Strategy. Due to the differences between the Strategy and the composition of the aforementioned market index, the Russell Midcap Growth Index published returns are not directly comparable to the returns generated by the Strategy. The performance is over a short time period and therefore does not reflect performance in different economic or market cycles. It is historic and should not be taken as any indication of future performance. Securities identified and described above may not be representative of the entire portfolio. It should not be assumed that recommendations in the future will be profitable or will equal the performance of the securities in this list. The information contained in this report is for informational purposes only and should not be deemed investment advice. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost, and current performance may be higher or lower than the performance quoted. For performance data current to the most recent month end, please contact us.

Performance of the Russell Midcap Growth Index is included for informational purposes to show the general trend in the midcap equity market for the periods indicated and is not intended to imply that the portfolio is similar to the index either in composition or element of risk. The volatility of an index may be materially different from the performance of the Strategy. The Russell Midcap Growth Index is an unmanaged stock market index that measures the performance of its respective component companies. Investors cannot invest directly in an index. Index performance does not reflect trading commissions and costs. Due to these differences, comparison to an index should not be relied upon as an accurate measure of comparison.

Top 10 Holdings

As of March 31, 2024

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Security Weight
41 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM AppLovin Corporation 6.63%
42 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM Ascendis Pharma A/S 6.11%
43 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM WillScot Mobile Mini Holdings Corp. 5.35%
44 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM CoStar Group, Inc. 5.13%
45 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM Exact Sciences Corporation 4.82%
46 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM Shift4 Payments, Inc. 4.80%
47 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM Procore Technologies, Inc. 4.64%
48 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM APi Group Corporation 4.60%
49 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM GoDaddy Inc. 4.32%
50 iim@inertiaim.com 13/04/2024 08:42 PM iim@inertiaim.com 13/04/2024 08:42 PM Sweetgreen, Inc. 4.23%

Portfolio Weights     As of March 31, 2024

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Industry Spyglass Growth Strategy Russell Midcap Growth Index
48 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Communication Services 5.96 4.22
49 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Consumer Discretionary 17.44 13.88
50 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Consumer Staples 0.00 2.79
51 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Energy 0.00 3.75
52 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Financials 12.48 11.06
53 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Health Care 16.83 18.32
54 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Industrials 13.65 20.09
55 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Information Technology 27.51 22.40
56 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Materials 0.00 1.33
57 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Real Estate 5.14 1.71
58 iim@inertiaim.com 13/04/2024 09:58 PM iim@inertiaim.com 13/04/2024 09:58 PM Utilities 0.00 0.43

Portfolio Market Cap Exposure

As of March 31, 2024